Sunday, December 21, 2014

Latest city council scrum: Banking.

The best bid may not be the best bid.  Such is the thinking on the Jackson city council.  The city council postponed voting to designate Bancorp South as a depository for the city's public funds at its regular meeting last Tuesday.   Trustmark provides the current depository services to the city.  The Yarber administration accepted bids from Trustmark, Bancorp South, and BankPlus for banking services.  The bids are posted below:

Bancorp South proposed an interest rate that was three basis points better than the one proposed by Trustmark.  The  cost proposed by Bancorp South was cheaper than Trustmark's bid by $35,472. The net gain under Bancorp South's bid  is $60,972 better than Trustmark's bid.  Thus Bancorp South beat Trustmark on both annual cost and the interest rate.

Needless to say, several council members objected to voting on whether to accept the bid.  Councilwoman Margaret Barrett-Simon wanted to send the matter to committee as she didn't feel comfortable voting on it.  Mayor Tony Yarber said he received "several concerns in the last 24 hours" about transferring the city money from one bank to another.  He stressed several times that the city used a bid process.  Trustmark has been the city depository for thirty years.  The resolution (posted below) is on the agenda for Monday's meeting of the city council. Mayor Yarber said the council needed to make a decision soon as certain transactions needed to take place before the end of the year is a change in depository's is made. 

Kingfish note:  How many bond deals have some of these councilwomen and councilmen voted for without question?   The city actually pursues bids and prepares to accept the best bid and suddenly the city council wants to backtrack.  The Mayor pointed out that no council members questioned the deal at the previous day's work session.  Hmm..... does anyone think some banks started making the phone calls? Nah, that couldn't happen in Mississippi.  Not at all.


Anonymous said...

If the mayor was interest in fixing pot holes and streets, like he interested contracts and moving money to a different bank, the city would be achieving something.. But instead him and stamps trying to come up with a kick back scheme..
It's funny the mayor house is financed thru bank corp south.. Yarber sit down before you be in a 12 ¥ 12 laying down..

Anonymous said...

5:21= JPS grad.

Anonymous said...

GED (pending).

Game On said...

Regardless; He makes a good point.

Anonymous said...

Why would anyone jump to "kick-backs"? The question is: Does the low bid mean anything to our Council?

If we have a bid process for this banking, and if the bank is located in Jackson and has the personnel and processes to meet the bid specifications, then by all means go with the least expensive to the City. We need every dime we can muster and we need to follow the law. The money has to be placed somewhere and this has nothing to do with pot holes except it may free up some funds. To the average citizen, it will make no difference. Stick to the law.

Anonymous said...

7:59. law says lowest and best bid. Not just price.

Anonymous said...

7:59 AM, although both banks have locations in Jackson, Bancorp South is based in Tupelo, whereas Trustmark is headquartered in Jackson. The lowest bid may not always be the "best" bid. I would presume that when considering what is best, in addition to looking at the costs, the Council is weighing the economic and social impact the banks have made within the city.

Anonymous said...

Hey 6:05 and 8:44 I am completely lost at 5:21's statement

Anonymous said...

Great idea! Let's move the city's funds away from one of the biggest corporations based in Jackson. I'll start the pool on how long before they announce a move to Highland Colony Parkway after this is approved.

Kingfish said...

Here come the corrupt ones, trying to tell us freedom is slavery and war is peace. That sixty+ thousand dollar savings can be used to pay for a detective at JPD or give raises to the current detectives (who are paid the same as patrol officers) and thus attract the better policemen to that section. That's just one example of what can be done with the savings.

Although I'm sure a couple a of councilman would rather spend it for additional "assistants" or slush funds.

Why is Margaret pushing back so hard on this?

Kingfish said...

Trustmark had Madison's business and lost it through the bidding process. Didn't seem to hurt Madison, did it?

No Do In This Hunt Banker said...

In response to 9:02: Bancorp South is headquartered in Tupelo, but is a significant player both in the banking community and giving back to the metro area. It also has substantial presence in the metro area, and has for many, many years. They actually sponsor many more events than Trustmark.

Anonymous said...

Get on board council, these savings could be used to partially fund another deputy CAO position.

Anonymous said...

Thank God there is something to be said for locating in Hinds County in this process. Our company is located in Hinds County and I would hope that means something in the bid process. Low bid rarely is the only metric taken into account when deciding on a vendor. Service and location should are important as well!!

Kingfish said...

They are both good corporate citizens in Jackson. They are both reputable. Sometimes you just lose.

The savings could be used to pay for a study for Farish Street.

Anonymous said...

I assume 9:39 was joking about the deputy CAO, but I can't tell if you're serious or not about dumping money into the pit known as Farish Street.

Anonymous said...

Betcha BancorpSouth had a higher minority participation percentage or involvement of some sort. That is the only priority for the City when determining bids. Officials privately say that they want to keep "the wealth" in the city by building up the local Jackson citizens (code language for helping out certain others handpicked by city officials). Go ask anyone who bids for business with the city and they'll tell you the same. Legal extortion at its finest....

Anonymous said...

Tony Yarber is a joke, another campaign debt, that Socratese Garret is behind..

Anonymous said...

Are these fixed rates for 2 years? Who would enter into a 2 year fixed rate contract in this point in the rate cycle? Were variable interest rates offered? What are costs of conversion? Do your homework...Not as simple as it seems.

Anonymous said...

If Trustmark had been selected the very same critics would be making the same comments. BankCorp won the bid. If they don't perform make a change but don't negate the bid process.

Anonymous said...

Kingfish is to Yarber as MSNBC is to Obama. Your mancrush is showing dude.

Anonymous said...

I bet if you compare Trustmark's taxes paid to Jackson, JPS, etc. that it would compare very favorable to BancorpSouth. From what I've heard, the City used the old, tired proposal form that's been used for a while. You can't analyze a banking relationship on one sheet of paper. They are not even considering a variable rate, which is crazy considering the rate increases that are likely to happen next year. Changing banks is not as simple as opening a few checking accounts and transferring money. Apparently Trustmark employs 500 Jacksonians.

KaptKangaroo said...

Is this not obvious?

I can understand value-add and I do think there should be a presentation of the interest costs in this consideration, however, these bids are miles apart.

Anonymous said...

Lately TrustMark was sponsoring a lot of Youth Programs in Madison . Kids in Jackson could some help too.

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